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The Zambian Kwacha is projected to maintain a steady trading range as supply, demand, and market sentiment shape its position against major currencies.
Thursday’s trading session saw the Kwacha strengthen significantly against the US dollar, driven by corporate demand to meet end-of-month obligations.
This rally comes despite inflation rising to 16.5 percent in November, prompting calls for further interest rate hikes.
A weaker US dollar and higher copper prices also supported the local currency.
According to Absa Bank Zambia’s daily market update, the increased trading volumes on the interbank market contributed to the Kwacha’s improved position.
“Market opened with the USD/ZMW interbank quoted at K27.200/27.250, and by midday, it traded at K27.900/27.950 on the bid and offer, closing at the same levels,” the update noted.
Meanwhile, the South African rand strengthened by 0.5 percent on Thursday, trading at 18.115 to the dollar.
The improvement followed the release of October producer inflation data and the central bank’s November Financial Stability Review.
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